On August 8, 2024, N-able Inc (NABL, Financial) released its 8-K filing detailing its second-quarter earnings for 2024. N-able Inc, a provider of cloud-based software solutions for managed service providers (MSPs), reported robust financial performance, surpassing analyst estimates and raising its full-year outlook.
Company Overview
N-able Inc is a global software company that empowers IT service providers with tools to monitor, manage, and secure their customers' systems, data, and networks. The company’s solutions are designed to support digital transformation and growth for small and medium-sized enterprises. N-able's revenue is primarily generated in the United States, with additional presence in the United Kingdom and other international regions.
Q2 2024 Financial Highlights
N-able Inc reported total revenue of $119.4 million for the second quarter of 2024, representing a 12.6% year-over-year growth, or 12.7% on a constant currency basis. This figure exceeded the analyst estimate of $116.83 million. Subscription revenue was $117.4 million, marking a 13.6% year-over-year increase.
The company achieved a GAAP gross margin of 84.0% and a non-GAAP gross margin of 84.7%. GAAP net income was $9.5 million, or $0.05 per diluted share, meeting the analyst estimate of $0.05 per share. Non-GAAP net income was $26.6 million, or $0.14 per diluted share.
Key Metrics and Achievements
Adjusted EBITDA for the quarter was $46.8 million, up 34.1% year-over-year, representing an adjusted EBITDA margin of 39.2%. This performance marks N-able's seventh consecutive quarter operating above the Rule of 45 on a constant currency revenue growth and adjusted EBITDA basis.
“N-able’s second quarter performance underscores the need for IT solutions among small and medium-sized businesses and MSPs,” said N-able president and CEO John Pagliuca. “Our award-winning data protection product Cove and our powerful security suite showed particular strength, highlighting the importance of resilience and protection.”
Balance Sheet and Cash Flow
As of June 30, 2024, N-able Inc reported total cash and cash equivalents of $157.5 million and total debt, net of debt issuance costs, of $334.1 million. The company generated $27.3 million in net cash from operating activities during the quarter.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $119.4 million | $106.1 million |
| GAAP Net Income | $9.5 million | $4.5 million |
| Non-GAAP Net Income | $26.6 million | $16.3 million |
| Adjusted EBITDA | $46.8 million | $34.9 million |
Financial Outlook
For the third quarter of 2024, N-able Inc expects total revenue in the range of $114.5 to $115.0 million, representing 6% to 7% year-over-year growth. Adjusted EBITDA is projected to be between $39.5 and $40.0 million, representing approximately 35% of total revenue.
For the full year 2024, the company has raised its revenue outlook to a range of $463.0 to $465.0 million, representing approximately 10% year-over-year growth. Adjusted EBITDA is expected to be between $165.5 and $167.5 million, representing approximately 36% of total revenue.
“As we enter the second half of the year, we are focused on strong execution and are raising the mid-point of our full-year revenue and profit outlook,” added N-able CFO Tim O’Brien.
For more detailed financial information, please refer to N-able Inc's 8-K filing.
Explore the complete 8-K earnings release (here) from N-able Inc for further details.
